Payments banks may also join private banks to offer tax, pension services

The finance ministry has now made it clear that there is now no bar on the RBI's authorisation of private-sector banks to offer government business

The government is open to the suggestion to include payments banks in the list of lenders that can offer services like tax and pension payments. A day after the finance ministry lifted an embargo on private-sector banks offering government-related banking transactions, officials said they were also open to including payments banks on the list. They are examining whether the capital structure of the payments banks would be sufficient to offer such services without any disruptions.
 
On Wednesday the ministry announced that not just designated private-sector banks but all private-sector universal banks could offer taxes and other revenue payment facilities,